Another major problem is bad management and this is not covered properly in the bill

Gavin CorbettShelter

"Of course, not all deposits are disputed, and some deposits are withheld for good reason but we know some are not.

"Where this is the case, we want to look at ways of making it easier for landlords and tenants to resolve their dispute without having to go through a lengthy and sometimes costly court process."

At the moment, the only way to resolve disputes over deposits, which can be up to two months' rent, is by taking legal action, including the use of the small claims court.

New amendment

Homeless charity Shelter welcomed the executive's commitment on rent deposits, but said a further amendment was needed to address bad management.

Head of campaigns Gavin Corbett said: "We are pleased the minister has agreed to look at the options to regulate deposits in Scotland and are confident this process will lead to a national rent deposit scheme being adopted.

"But another major problem is bad management and this is not covered properly in the bill."

Mr Corbett said MSPs should back an amendment to give tenants the right to appeal to a new tribunal when they were unhappy with how their landlord was managing the tenancy.